The Reserve Bank of India (RBI) on March 06, 2026, issued Draft Amendment Directions for ‘Review of Framework of Limiting Customer Liability in Digital Transactions’.
The banking regulator has decided to revise the 2017 guidelines on limiting customer liability in unauthorised electronic banking transactions in view of developments in the digital payment and banking ecosystem. The revised instructions expand the scope to cover more types of fraudulent electronic banking transactions, aim to reduce the time taken by banks to resolve fraud complaints, and introduce a compensation mechanism for small-value fraudulent transactions to provide better protection to customers.
The following directions have been amended, namely:
o Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Third Amendment Directions, 2026
o Reserve Bank of India (Small Finance Banks - Responsible Business Conduct) Third Amendment Directions, 2026
o Reserve Bank of India (Payments Banks - Responsible Business Conduct) Second Amendment Directions, 2026
o Reserve Bank of India (Local Area Banks - Responsible Business Conduct) Third Amendment Directions, 2026
o Reserve Bank of India (Regional Rural Banks - Responsible Business Conduct) Third Amendment Directions, 2026
o Reserve Bank of India (Urban Co-operative Banks - Responsible Business Conduct) Third Amendment Directions, 2026
o Reserve Bank of India (Rural Co-operative Banks - Responsible Business Conduct) Third Amendment Directions, 2026
• The compensation mechanism proposed to be introduced under these Amendment Directions will be in force for one year from the effective date of these Directions.
• The comments/feedback on the draft Amendment Directions may be submitted by the regulated entities and members of the public/other stakeholders on or before April 6, 2026.
[Press Release: 2025-2026/2224]
